S.A. network operator to trial micro grids for regional towns

Published by

The operator of the South Australia electricity network says it is to trial micro-grids with solar and battery storage in regional areas as a potentially cost-effective alternative to building or replacing poles and wires.

SA Power Networks, in its latest submission to the Australian Energy Regulator for spending over the next five years, says “micro-grid” technology has “particular promise” – both as a cheaper alternative to diesel, and as a potential solution to weather related black-outs that frequently plague regional areas.

In its submission, SA Power Networks says it needs to upgrade 31 remote power lines, and it will use a solar and battery storage based micro grid for one one them – at a cost of $2.8 million.

It will be a combination of distributed storage and centralised storage, and will be considered as a future alternative option to remediate reliability or defer augmentation to remote communities.

Although micro-grids have existed for many years, both for individual customers and communities, they have generally relied on diesel generation as their prime means of electrical supply when islanded,” the company said in its submission.

“These types of systems are prohibitively expensive other than for customers that place a very high value on reliability of supply (for example, hospitals and data centres) or for customers that are remote and for which a grid connection is uneconomic.

“With the continued advancement of solar PV distributed generation capabilities, and anticipated cost reductions in battery storage technologies, new opportunities are arising for more cost effective micro-grids.

“With significant local generation already in place (solar PV) and if a material number of customers also take up battery technology, this investment by individual customers may be able to be leveraged to maintain supply to an entire community should that community’s network connection fail.”

SA Power Networks predicted last year that regional communities would ultimately focus on micro-grids, which would rely on renewables and storage, and could either be “stand-alone” or connected to the main grid with a “thin wire” as back-up. The savings to the network operator could be significant.

In Queensland, Egon Energy is now installing battery storage as a cheaper and more reliable alternative than upgrading the wires that connect coal fired power stations to regional consumers, and Western Australia is also looking to micro-grids as an alternative to “costly and unreliable” centralised grids.

Giles Parkinson is founder and editor-in-chief of Renew Economy, and founder and editor of its EV-focused sister site The Driven. He is the co-host of the weekly Energy Insiders Podcast. Giles has been a journalist for more than 40 years and is a former deputy editor of the Australian Financial Review. You can find him on LinkedIn and on Twitter.

Giles Parkinson

Giles Parkinson is founder and editor-in-chief of Renew Economy, and founder and editor of its EV-focused sister site The Driven. He is the co-host of the weekly Energy Insiders Podcast. Giles has been a journalist for more than 40 years and is a former deputy editor of the Australian Financial Review. You can find him on LinkedIn and on Twitter.

Share
Published by

Recent Posts

Climate Authority’s “misinformation” report hit a nerve at News Corp for a reason

Few organisations have so consistently campaigned to stymie climate action – possibly anywhere on the…

4 September 2026

Energy Insiders: Zero carbon heat, Australia’s next big challenge

Tom Geiser from Good Heat on the technologies to provide carbon-free industrial heat. Plus: LNP's…

4 September 2026

Australia’s climate hypocrisy on show as world braces for global warming “overshoot”

Days apart, one Australian minister called for reduced dependence on fossil fuels, while another literally…

4 September 2026

Gigawatt-hour battery plan edges closer to construction as Swiss giant takes full ownership of site

Swiss storage giant completes purchase of the project site for big four-hour battery, setting a…

4 September 2026

“Golden turbine” complete, in huge milestone at rare state-owned wind farm

Installation of the "golden" turbine is being hailed as a "huge milestone" for a wind…

4 September 2026

Can you run a paper mill on solar and “hot bricks”? Visy says it can – on paper, at least

A paddock of solar and an innovative converter could allow Visy to cut gas use…

4 September 2026